In a major shake-up, Intel has confirmed it will outsource a large chunk of its global marketing operations to consulting giant Accenture, with artificial intelligence playing a key supporting role — a move expected to trigger sweeping job cuts and deepen the company’s ongoing restructuring.
The decision, announced on June 20, comes as new CEO Lip-Bu Tan pushes forward with aggressive cost-cutting measures to steer the struggling semiconductor giant back to profitability.
While Intel has not specified exactly how many positions will be eliminated, insiders say affected employees have been told they could lose their jobs as soon as July 11. The layoffs are expected to hit marketing teams first, but the impact won’t stop there: company sources say up to 20% of factory and manufacturing staff could also be laid off in coming months as part of a broader downsizing.
“As we shared earlier this year, we’re making difficult choices to become a leaner, faster, and more competitive company,” Intel said in a note to staff. “Accenture has been a trusted partner for years and will help us simplify operations and boost customer engagement through AI.”
Internal communications reviewed by journalists indicate some Intel workers may be asked to train Accenture teams that will replace them — an approach that has already sparked anxiety among employees.
Under Lip-Bu Tan — a respected semiconductor industry veteran but a newcomer to Intel — the chipmaker has struggled to regain lost ground in PCs and data centres, while competitors like Nvidia and AMD have surged ahead in AI and high-performance computing.
Intel’s revenue has dropped by about a third over the past two years, and the company recently reported losses — a stark contrast for a firm once considered the gold standard of Silicon Valley hardware.
Industry analysts say outsourcing marketing and embracing AI could help cut costs in the short term but warn it’s a gamble to rely heavily on automation and external contractors for work traditionally done in-house.
Some staff have described the atmosphere inside Intel as tense, with many bracing for further cuts. Still, the company insists the overhaul is necessary to survive in an increasingly competitive market.
